From theory to practice: Designing a European basic income

Abstract Basic income, a periodic cash payment unconditionally delivered to all accredited residents on an individual basis, has garnered a great deal of attention in recent years driven by rising inequalities, the failure of minimum income schemes, labor market transformations, and diverse basic income pilot projects worldwide. However, the successful implementation of a basic income requires a comprehensive and sustained effort. This research contributes to this endeavor by providing an unprecedented microsimulation analysis of the economic feasibility of a European Basic Income (EBI), demonstrating that it can be financed sustainably and equitably without reducing existing tax revenues. The proposed EBI, financed through a reform of the personal income tax and the introduction of common European wealth and greenhouse gas emissions taxes, ensures the material existence of all Europeans and fosters a more egalitarian European Union through its redistributive effects.